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Northrop CEO eyeing divestitures

Wednesday, September 08, 2010 - 04:27

Sept. 8 - Northrop Grumman CEO Wes Bush says divesting the company’s shipbuilding unit would be best overall, but the process is still in the early stages.

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of making a decision on what it will ultimately do with its shipbuilding unit. Wes Brown is the presidency. North of prominently as joins us now thanks very much for coming into the anchor Aaron. The stuff with Our decision to explore that separation -- shipbuilding business. Was more focused on our view that there's limited synergy between what we -- and shipbuilding and the rest of our company and consequently if there's limited's energy. Now our view is that the two pieces of the business can best create value for our customers and for our shareholders. By pursuing their futures independently but we're in the early -- early stages of exploring. And other areas and you see divestment them like common future GGC that is that we -- now we are an active manager of our portfolio. Now we go through -- regular process of today yes thank chip that was Wes bush president and CEO of Northrop Grumman . In Washington I'm -- and -- is it it's just. Grumman says it's still in the early stages of making a decision on what it will ultimately do with its shipbuilding unit. Wes Brown is the presidency. North of prominently as joins us now thanks very much for coming into the anchor Aaron. The stuff with yeah it's a difficult time the defense industry and under some pressure to deliver value to -- to shareholders GC. Divestment has as the way forward to did sort of realized cash and tentative about this -- Our decision to explore that separation -- shipbuilding business. Was more focused on our view that there's limited synergy between what we -- and shipbuilding and the rest of our company and consequently if there's limited's energy. Now our view is that the two pieces of the business can best create value for our customers and for our shareholders. By pursuing their futures independently but we're in the early -- early stages of exploring. And other areas and you see divestment them like common future GGC that is that we -- now we are an active manager of our portfolio. Now we go through -- regular process of assessing. Different aspects of our business last year we announced that divestiture of our task business which is a more professional services business. Driven largely by some of the changes and customer policy. That was a I think very successful investor in terms our ability to continue to serve that customer and for our shareholders. So we aren't active manager our portfolio. But we are very focused on growing shareholder value through whatever actions we take do you see that company that you were in charge of instead -- he is being a very different company into the areas that it was in the company's you have. I think we have a great foundation for where we want to be invited -- years. Now we are largely focused on four major areas. Where we today already have substantial capability. Those -- C four I SR. Our manned and unmanned air systems that logistics business and cyber security. And you think that it's those areas are enough to mean that. Is just as tough time defense budgets and laws of the timing around the world and so in the western countries and that's enough to really change. To achieve real growth is -- bring back good times it to you company into industry. We are focused on creating value. Not necessarily top line growth. We believe those areas in addition to several others that are perhaps not quite a substantial -- Represent very meaningful opportunities to both serve our customer well but as we see great news they have in those areas. And provide great value to our shareholders shall. What about the. The defense industry as a whole -- where do you see that going in the next few years in that environment do you see. More smaller leaner company as you see more consolidation. Coming in in the years ahead. I think there will be changes in our environment -- and of necessity. As we all focus on affordability and driving our cost competitiveness. And as we focus on the changes and customer and -- Our customer faces a multi dimensional threat profile when we think about everything going on around the globe. And our customer has to be prepared for that. Our job is to look forward in a position support what they're doing and make the right investments in our capabilities to make sure that their four. And -- east I mean we talked about the cost cuts -- as you stand on black now do you think you'll. Almost threw it back kind of cost cutting. Cutting the fat kind of process so is there it still. Someone ago and we've taken a lot of actions and our company here the last few years we've consolidated from -- sectors to five. Have we launched a very broad and aggressive shared services capability and our company to take advantage of our scale and take cost out in -- doing. Now we've announced the relocation of corporate headquarters and we're reducing the size of our corporate team is worth making that move. And every sector of our business is working aggressively cross traction. So we've made a lot of progress but we're not done. Had no business has ever done in terms of optimizing its cost structure. And I see this as something that continues well into our future and well thanks very much for joining us today yes thank chip that was Wes bush president and CEO of Northrop Grumman . In Washington I'm -- and -- is it it's just.

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Northrop CEO eyeing divestitures

Wednesday, September 08, 2010 - 04:27